When the model y_t = T_t × S_t × I_t is assumed, to identify the ________, we have to find the seasonally adjusted series. A) random component B) seasonality C) residuals D) trend

Question

Quizplus · Accepted Answer

To identify the trend in a time series model that includes trend (T), seasonality (S), and irregular components (I), we must remove the seasonal effects, thus finding the seasonally adjusted series. This process isolates the trend component by eliminating the seasonal fluctuations.

When the Model Yt = Tt × St × It

When the Model Y_t = T_t × S_t × I_t